Audio: Regulator unhappy with savings market - Savings - News - Moneyfacts


Audio: Regulator unhappy with savings market

Audio: Regulator unhappy with savings market

Category: Savings

Updated: 11/07/2014
First Published: 11/07/2014

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
Earlier this week, Britain's financial regulator the FCA published the initial findings of a probe into the cash savings market because of concerns that competition isn't working in the interests of most consumers.

It found that a small minority of savers managed to get good rates by constantly comparing accounts and moving their money when necessary, but too many people forget about their savings and end up in accounts that pay very poor rates of interest.

This is because many of us put our money in an account, often on the basis of an introductory rate of interest, and leave it there. Once the introductory period ends, we forget about it and the interest rate reverts to a much lower level.

The other concern the regulator has is that people don't even bother to shop around when they open a savings account. The FCA found that people were more likely than not to open a savings account with their current account provider, irrespective of whether the rate is competitive or not.

Sylvia Waycot, Editor of, was asked to speak to Simon Mayo about how far this report can go and what she would like to see as a result of the review.

What next?

Use our savings account search.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Savings rates plummet to fresh lows yet again

It’s becoming a recurring theme, and unfortunately, it’s showing no signs of stopping. Savings rates have plummeted to fresh lows once again as the impact of the base rate cut continues – and this month, product availability has followed.

Less than half of savings accounts beat inflation

Official figures show that inflation jumped up during September, with CPI rising to 1%. Not only does this mean that consumers may begin to feel the impact on their wallets, but there are now far fewer savings accounts that will beat inflation.

Number of savings accounts falls to record low

As if the continued drop in savings rates wasn’t bad enough, our latest research reveals another blow to already hard-pressed savers, with the number of accounts available having fallen to a record low.